THE RECOVERY OF DEBTS AND BANKRUPTCY ACT, 1993 
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ARRANGEMENT OF SECTIONS 
Last Updated: 9-9-2021 
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CHAPTER I 

PRELIMINARY 

SECTIONS 

1.  Short title, extent, commencement and application. 
2.  Definitions. 

CHAPTER II 

ESTABLISHMENT OF TRIBUNAL AND APPELLATE TRIBUNAL 

3.  Establishment of Tribunal. 
4.  Composition of Tribunal. 
5.  Qualifications for appointment as Presiding Officer. 
6.  Term of office of Presiding Officer. 
 6A. Qualifications, terms and conditions of service of Presiding Officer. 
7.  Staff of Tribunal. 
8.  Establishment of Appellate Tribunal. 
9.  Composition of Appellate Tribunal. 
10.  Qualifications for appointment as Chairperson of the Appellate Tribunal. 
11.  Term of office of Chairperson of Appellate Tribunal. 
12.  Staff of the Appellate Tribunal. 
13.  Salary and allowances and other terms and conditions of service of Presiding Officers. 
14.  Filling up of vacancies. 
15.  Resignation and removal. 
 15A. Qualifications, terms and conditions of service of Chairperson. 
16.  Orders  constituting  Tribunal  or  an  Appellate  Tribunal  to  be  final  and  not  to  invalidate  its 

proceedings. 

CHAPTER III 

JURISDICTION, POWERS AND AUTHORITY OF TRIBUNALS 

17.  Jurisdiction, powers and authority of Tribunals. 
17A. Power of Chairperson of Appellate Tribunal. 
18.  Bar of jurisdiction. 

CHAPTER IV 

PROCEDURE OF TRIBUNALS 

19.  Application to the Tribunal. 
19A. Filing of recovery applications, documents and written statements in electronic form. 
20.  Appeal to the Appellate Tribunal. 
21.  Deposit of amount of debt due, on filing appeal. 
22.  Procedure and powers of the Tribunal and the Appellate Tribunal. 
22A. Uniform procedure for conduct of proceedings. 
23.  Right to legal representation and Presenting Officers. 
24.  Limitation. 

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CHAPTER V 

RECOVERY OF DEBT DETERMINED BY TRIBUNAL 

SECTIONS 

25.  Modes of recovery of debts. 
26.  Validity of certificate and amendment thereof. 
27.  Stay of proceedings under certificate and amendment or withdrawal thereof. 
28.  Other modes of recovery. 
29.  Application of certain provisions of Income-tax Act. 
30.  Appeal against the order of Recovery Officer. 
30A. Deposit of amount of debt due for filing appeal against orders of the Recovery Officer. 

CHAPTER VI 

MISCELLANEOUS 

31.  Transfer of pending cases. 
31A. Power of Tribunal to issue certificate of recovery in case of decree or order. 
31B. Priority to secured creditors. 
32.  Chairperson, Presiding Officer and staff of Appellate Tribunal and Tribunal to be public servants. 
33.  Protection of action taken in good faith. 
34.  Act to have overriding effect. 
35.  Power to remove difficulties. 
36.  Power to make rules. 
37.  Repeal and saving. 

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 THE RECOVERY OF DEBTS AND BANKRUPTCY ACT, 1993 

ACT NO. 51 OF 1993 

[27th August, 1993.] 
An Act to provide for the establishment of Tribunals for expeditious adjudication and recovery 
of  debts  due  to  banks  and  financial  institutions  1[,insolvency  resolution  and  bankruptcy  of 
individuals and partnership firms] and for matters connected therewith or incidental thereto. 
BE it enacted by Parliament in the Forty-fourth Year of the Republic of India as follows:— 

CHAPTER I 
PRELIMINARY 

1. Short title, extent, commencement and application.—(1) This Act may be called the Recovery 

of Debts 2[and Bankruptcy] Act, 1993. 

(2) It extends to the whole of India except the State of Jammu and Kashmir*. 
(3) It shall be deemed to have come into force on the 24th day of June, 1993. 
(4) 3[Save as otherwise provided, the provisions of this Code] Act shall not apply where the amount 
of debt due to any bank or financial institution or to a consortium of banks or financial institutions is less 
than ten lakh rupees or such other amount, being not less than one lakh rupees, as the Central Government 
may, by notification, specify. 

2. Definitions.—In this Act, unless the context otherwise requires,— 

(a)  “Appellate  Tribunal”  means  an  Appellate  Tribunal  established  under  sub-section  (1)  of 

section 8; 

(b) “application” means an application made to a Tribunal under section 19; 
(c) “appointed day”, in relation to a Tribunal or an Appellate Tribunal, means the date on which 
such Tribunal is established under sub-section (1) of section 3 or, as the case may be, sub-section (1) 
of section 8; 

(d) “bank” means— 

(i) banking company; 
(ii) a corresponding new bank; 
(iii) State Bank of India; 
(iv) a subsidiary bank; or 
(v) a Regional Rural Bank; 
4[(vi) a multi-State co-operative bank;] 

(e)  “banking  company”  shall  have  the  meaning  assigned  to  it  in  clause  (c)  of  section  5  of  the 

Banking Regulation Act, 1949 (10 of 1949); 

5[(ea) “Chairperson” means a Chairperson of an Appellate Tribunal appointed under section 9;] 
(f) “corresponding new bank” shall have the meaning assigned to it in clause (da) of section 5 of 

the Banking Regulation Act, 1949 (10 of 1949); 

6[(g) “debt” means any liability (inclusive of interest) which is claimed as  due from any person 
7[or  a  pooled  investment  vehicle  as  defined  in  clause  (da)  of  section  2  of  the  Securities  Contracts 
(Regulation) Act, 1956 (42 of 1956)] by a bank or a financial institution or by a consortium of banks 
or  financial  institutions  during  the  course  of  any  business  activity  undertaken  by  the  bank  or  the 
financial institution or the consortium under any law for the time being in force, in cash or otherwise,  
whether secured or unsecured, or assigned, or whether payable under a decree or order of any civil 
court  or  any  arbitration  award  or  otherwise  or  under  a  mortgage  and  subsisting  on,  and  legally 

1. Ins. by Act 31 of 2016, s. 249 and the Fifth Schedule (w.e.f. 1-12-2019 ). 
2.  Subs. by s. 249 and the Fifth Schedule, ibid  for “Due to Banks and Financial Institutions” (w.e.f. 1-12-2019).  
3. Subs, by s. 249 and the Fifth Schedule, ibid for “The provision of this Code” (w.e.f. 1-12-2019). 
4. Ins. by Act 1 of 2013, s. 12 (w.e.f. 15-1-2013). 
5. Ins. by Act 1 of 2000, s. 3 (w.e.f. 17-1-2000). 
6. Subs. by s. 3, ibid., for clause (g) (w.e.f 17-1-2000). 
*. Vide notification No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu and 
Kashmir and the Union territory of Ladakh. 
7. Ins. by Act 13 of 2021, s. 160 (w.e.f. 1-4-2021). 

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recoverable on, the date of the application  1[and includes any liability towards debt securities which 
remains unpaid in full or part after notice of ninety days served upon the borrower by the debenture 
trustee or any other authority in whose favour security interest is created for the benefit of holders of 
debt securities or;]] 

1[(ga) “debt securities” means debt securities listed in accordance with regulations made by the 

Securities  Exchange  Board  of  India  under  the  Securities  and  Exchange  Board  of  India  Act,  1992              
(15 of 1992);] 

(h) “financial institution” means— 

(i) a public financial institution within the meaning of section 4A of the Companies Act, 1956 

(1 of 1956); 

2[(ia) the securitisation company or reconstruction company which has obtained a certificate 
of  registration  under  sub-section  (4)  of  section  3  of  the  Securitisation  and  Reconstruction  of 
Financial Assets and Enforcement of Security Interest Act, 2002 (54 of 2002);] 

1[(ib) a debenture trustee registered with the Board and appointed for secured debt securities;] 

(ii)  such  other  institution  as  the  Central  Government  may,  having  regard  to  its  business 

activity and the area of its operation in India, by notification, specify; 

1[(ha)  “financial  lease”  means  a  lease  under  a  lease  agreement  of  tangible  asset,  other  than 
negotiable instrument or negotiable document, for transfer of lessor's right therein to the lessee for a 
certain time in consideration of payment of agreed amount periodically and where lessee becomes the 
owner  of  the  such  assets  at  the  expiry  of  the  term  of  lease  or  on  payment  of  the  agreed  residual 
amount, as the case may be;] 

(i) “notification” means a notification published in the Official Gazette; 

(j) “prescribed” means prescribed by rules made under this Act; 

3[(ja) “Presiding Officer” means the Presiding Officer of the Debts Recovery Tribunal appointed 

under sub-section (1) of section 4;] 

1[(jb) “property” means—  

(a) immovable property;  

(b) movable property;  

(c) any debt or any right to receive payment of money, whether secured or unsecured;  

(d) receivables, whether existing or future;  

(e)  intangible  assets,  being  know-how,  patent,  copyright,  trade  mark,  licence,  franchise  or 
any  other  business  or commercial right  of  similar  nature, as  may  be  prescribed by  the  Central 
Government in consultation with Reserve Bank;] 

(k) “Recovery Officer” means a Recovery Officer appointed by the Central Government for each 

Tribunal under sub-section (1) of section 7; 

(l)  “Regional  Rural  Bank”  means  a  Regional  Rural  Bank  established  under  section  3  of  the 

Regional Rural Banks Act, 1976 (21 of 1976); 

1[(la) “secured creditor” shall have the meaning as assigned to it in clause (zd) of sub-section (1) 
of section 2 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security 
Interest Act, 2002 (54 of 2002); 

1. Ins. by Act 44 of 2016, s. 26 (w.e.f. 1-9-2016). 
2. Ins. by Act 30 of 2004, s. 19 (w.e.f. 11-11-2004). 
3. Ins. by Act 1 of 2000, s. 3 (w.e.f. 17-1-2000). 

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(lb)  “security  interest”  means  mortgage,  charge,  hypothecation,  assignment  or  any  other  right, 
title  or  interest  of  any  kind  whatsoever  upon  property,  created  in  favour  of  any  bank  or  financial 
institution and includes— 

(a) such right, title or interest upon tangible asset, retained by the bank or financial institution 
as owner of the property, given on hire or financial lease or conditional sale which secures the 
obligation to pay any unpaid portion of the purchase price of the asset or an obligation incurred or 
any credit provided to enable the borrower to acquire the tangible asset; or 

(b) such right, title or interest in any intangible asset or licence of any intangible asset, which 
secures the obligation to pay any unpaid portion of the purchase price of the intangible asset or 
the  obligation  incurred  or  any  credit  extended  to  enable  the  borrower  to  acquire  the  intangible 
asset or licence of intangible asset;] 

(m) “State Bank of India” means the State Bank of India constituted under section 3 of the State 

Bank of India Act, 1955 (23 of 1955); 

(n) “subsidiary bank” shall have the meaning assigned to it in clause (k) of section 2 of the State 

Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959); 

(o) “Tribunal” means the Tribunal established under sub-section (1) of section 3. 

ESTABLISHMENT OF TRIBUNAL AND APPELLATE TRIBUNAL 

CHAPTER II 

3. Establishment of Tribunal.—(1) The Central Government shall, by notification, establish one or 
more  Tribunals,  to  be  known  as  the  Debts  Recovery  Tribunal,  to  exercise  the  jurisdiction,  powers  and 
authority conferred on such Tribunal by or under this Act. 

1[(1A)  The  Central  Government  shall  by  notification  establish  such  number  of  Debts  Recovery 
Tribunals and its benches as it may consider necessary, to exercise the jurisdiction, powers and authority 
of  the  Adjudicating  Authority  conferred  on  such  Tribunal  by  or  under  the  Insolvency  and  Bankruptcy 
Code, 2016 (31 of 2016).] 

(2) The Central Government shall also specify, in the notification referred to in sub-section (1), the 
areas within which the Tribunal may exercise jurisdiction for entertaining and deciding the applications 
filed before it. 

4. Composition of Tribunal.—(1) A Tribunal shall consist of one person only (hereinafter referred 

to as the Presiding Officer) to be appointed, by notification, by the Central Government. 

2[(2) Notwithstanding anything contained in sub-section (1), the Central Government may— 

(a) authorise the Presiding Officer of any other Tribunal established under any other law for the 
time being in force to discharge the function of the Presiding Officer of a Debt Recovery Tribunal 
under this Act in addition to his being the Presiding Officer of that Tribunal; or 

(b) authorise the judicial Member holding post as such in any other Tribunal, established under 
any other law for the time being in force, to discharge the functions of the Presiding Officer of Debts 
Recovery Tribunal under this Act, in addition to his being the judicial Member of that Tribunal.] 

5.  Qualifications  for  appointment  as  Presiding  Officer.—A  person  shall  not  be  qualified  for 
appointment  as  the  Presiding  Officer  of  a  Tribunal  unless  he  is,  or  has  been,  or  is  qualified  to  be,  a 
District Judge. 

3[6. Term of office of Presiding Officer.— The Presiding Officer of a Tribunal shall hold office for 
a  term  of  five  years  from  the  date  on  which  he  enters  upon  his  office  and  shall  be  eligible  for 
reappointment: 

Provided that no person shall hold office as the Presiding Officer of a Tribunal after he has attained 

the age of sixty-five years.] 

1. Ins. by Act 31 of 2016, s. 249 and the Fifth Schedule (w.e.f. 1-12-2019).  
2. Subs. by Act 44 of 2016, s. 27, for sub-section (2) (w.e.f. 1-9-2016). 
3. Subs. by s. 28, ibid., for section 6 (w.e.f. 1-9-2016). 

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1[6A.  Qualifications,  terms  and  conditions  of  service  of  Presiding  Officer.—Notwithstanding 
anything  contained  in this Act,  the  qualifications,  appointment, term  of  office,  salaries  and  allowances, 
resignation, removal and the other terms and conditions of service of the Presiding Officer of the Tribunal 
appointed  after  the  commencement  of  2[the  Tribunal  Reforms  Act,  2021,  shall  be  governed  by  the 
provisions of Chapter II of the said Act]: 

 Provided that the Presiding Officer appointed before the commencement of Part XIV of Chapter VI 
of the Finance Act, 2017 (7 of 2017), shall continue to be governed by the provisions of this Act, and the 
rules  made  thereunder  as  if  the  provisions  of  section  184  of  the  Finance  Act,  2017  had  not  come  into 
force.] 

7.  Staff  of  Tribunal.—(1)  The  Central  Government  shall  provide  the  Tribunal  3[with  one  or  more 

Recovery Officers] and such other officers and employees as that Government may think fit. 

(2)  4[The  Recovery  Officers]  and  other  officers  and  employees  of  a  Tribunal  shall  discharge  their 

functions under the general superintendence of the Presiding Officer. 

(3) The salaries and allowances and other conditions of service of the 5[Recovery Officers] and other 

officers and employees of a Tribunal shall be such as may be prescribed. 

8.  Establishment  of  Appellate  Tribunal.—(1)  The  Central  Government  shall,  by  notification, 
establish  one  or  more  Appellate  Tribunals,  to  be  known  as  the  Debts  Recovery  Appellate  Tribunal,  to 
exercise the jurisdiction, powers and authority conferred on such Tribunal by or under this Act: 

6[Provided  that  the  Central  Government  may  authorise  the  Chairperson  of  any  other  Appellate 
Tribunal, established  under  any  other law for the time  being  in  force, to  discharge  the  functions  of  the 
Chairperson  of  the  Debts  Recovery  Appellate  Tribunal  under  this  Act  in  addition  to  his  being  the 
Chairperson of that Appellate Tribunal.] 

7[(1A)  The  Central  Government  shall,  by  notification,  establish  such  number  of  Debt  Recovery 
Appellate  Tribunals  to  exercise  jurisdiction,  powers  and  authority  to  entertain  appeal  against  the  order 
made  by  the  Adjudicating  Authority  under  Part  III  of  the  Insolvency  and  Bankruptcy  Code,  2016             
(31 of 2016).] 

(2) The  Central  Government  shall also  specify  in  the  notification, referred  to  in  sub-section (1)  the 

Tribunals in relation to which the Appellate Tribunal may exercise jurisdiction. 

8[(3)  Notwithstanding  anything  contained  in  sub-sections  (1)  and  (2),  the  Central  Government  may 
authorise the Chairperson of one Appellate Tribunal to discharge also the functions of the Chairperson of 
other Appellate Tribunal.] 

9.  Composition  of  Appellate  Tribunal.—An  Appellate  Tribunal  shall  consist  of  one  person  only 
(hereinafter referred to as  9[the Chairperson of the Appellate Tribunal]) to be appointed, by notification, 
by the Central Government. 

10. Qualifications for appointment as  9[the Chairperson of the Appellate Tribunal].—A person 

shall not be qualified for appointment as 10[the Chairperson of an Appellate Tribunal] unless he— 

(a) is, or has been, or is qualified to be, a Judge of a High Court; or 
(b) has been a member of the Indian Legal Service and has held a post in Grade I of that service 

for at least three years; or 

(c) has held office as the Presiding Officer of a Tribunal for at least three years. 

11[11.  Term  of  office  of  Chairperson  of  Appellate  Tribunal.—The  Chairperson  of  an  Appellate 
Tribunal shall hold office for a term of five years from the date on which he enters upon his office and 
shall be eligible for reappointment: 

1. Ins. by Act 7 of 2017, s. 179 (w.e.f. 26-5-2017). 
2. Subs. by Act 33 of 2021, s. 18, for “Part XIV of Chapter VI of the Finance Act, 2017 (7 of 2017), shall be governed by the 

provisions of section 184 of that Act” (w.e.f. 4-4-2021). 

3. Subs. by Act 1 of 2000, s. 4, for “with a Recovery Officer” (w.e.f. 17-1-2000). 
4. Subs. by s. 4, ibid., for “The Recovery Officer” (w.e.f. 17-1-2000). 
5. Subs. by s. 4, ibid., for “Recovery Officer” (w.e.f. 17-1-2000). 
6. Ins. by Act 44 of 2016, s. 29 (w.e.f. 1-9-2016). 
7. Ins. by Act 31 of 2016, s. 249 and the Fifth Schedule (w.e.f. 1-12-2019). 
8. Ins. by Act 1 of 2000, s. 5 (w.e.f. 17-1-2000). 
9. Subs. by s. 2, ibid., for “the Presiding Officer of the Appellate Tribunal” (w.e.f. 17-1-2000). 
10. Subs. by s. 2, ibid., for “the Presiding Officer of an Appellate Tribunal” (w.e.f. 17-1-2000). 
11. Subs. by Act 44 of 2016, s. 30, for section 11 (w.e.f. 1-9-2016). 

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Provided  that  no  person  shall  hold  office  as  the  Chairperson  of  a  Appellate  Tribunal  after  he  has 

attained the age of seventy years.] 

12. Staff of the Appellate Tribunal.—The provisions of section 7 (except those relating to Recovery 
Officer)  shall,  so  far  as  may  be,  apply  to  an  Appellate  Tribunal  as  they  apply  to  a  Tribunal  and 
accordingly  references  in  that  section  to  “Tribunal”  shall  be  construed  as  references  to  “Appellate 
Tribunal” and references to “Recovery Officer” shall be deemed to have been omitted. 

13. Salary and allowances and other terms and conditions of service of Presiding Officers.—The 
salary  and  allowances  payable  to,  and  the  other  terms  and  conditions  of  service  (including  pension, 
gratuity and other retirement benefits) of,  1[the Presiding Officer of a Tribunal or the Chairperson of an 
Appellate Tribunal] shall be such as may be prescribed: 

Provided that neither the salary and allowances nor the other terms and conditions of service of 2[the 
Presiding  Officer  of  a  Tribunal  or  the  Chairperson  of  an  Appellate  Tribunal  shall  be  varied  to  his] 
disadvantage after appointment. 

14. Filling up of vacancies.—If, for any reason other than temporary absence, any vacancy occurs in 
the office of 3[the Presiding Officer of a Tribunal or the Chairperson of an Appellate Tribunal], then the 
Central Government shall appoint another person in accordance with the provisions of this Act to fill the 
vacancy  and  the proceedings  may  be  continued  before  the Tribunal  or the  Appellate Tribunal  from  the 
stage at which the vacancy is filled. 

15. Resignation and removal.—(1)  1[The Presiding Officer of a Tribunal or the Chairperson of an 
Appellate Tribunal] may, by notice in writing under his hand addressed to the Central Government, resign 
his office: 

Provided that 4[the Presiding Officer of a Tribunal or the Chairperson of an Appellate Tribunal] shall, 
unless he is permitted by the Central Government to relinquish his office sooner, continue to hold office 
until the expiry of three months from the date of receipt of such notice or until a person duly appointed as 
his successor enters upon his office or until the expiry of his term of office, whichever is the earliest. 

(2)  1[The  Presiding  Officer  of  a Tribunal  or  the  Chairperson  of an  Appellate Tribunal] shall  not  be 
removed from his office except by an order made by the Central Government on the ground of proved 
misbehaviour or incapacity after inquiry,— 

(a) in the case of the Presiding Officer of a Tribunal, made by a Judge of a High Court; 
(b) in the case of  5[the Chairperson of an Appellate Tribunal], made by a Judge of the Supreme 

Court, 

in  which  6[the  Presiding  Officer  of  a  Tribunal  or  the  Chairperson  of  an  Appellate  Tribunal]  has  been 
informed of the charges against him and given a reasonable opportunity of being heard in respect of these 
charges: 

7[Provided  that  the  Central  Government,  during  the  pendency  of  the  inquiry  against  the  Presiding 
Officer  or  a  Chairperson,  as  the  case  may  be,  may,  after  consulting  the  Chairperson  of  the  Selection 
Committee  constituted  for  selection  of  Presiding  Officer  or  Chairperson,  pass  an  order  suspending  the 
Presiding Officer or the Chairperson, if it is satisfied that he should cease to discharge his functions as a 
Presiding Officer or Chairperson, as the case may be.] 

(3)  The  Central  Government  may,  by  rules,  regulate  the  procedure  for  the  investigation  of 
misbehaviour  or  incapacity  of  8[the  Presiding  Officer  of  a  Tribunal  or  the  Chairperson  of  an  Appellate 
Tribunal]. 

1. Subs. by Act 1 of 2000, s. 2, for “the Presiding Officer of a Tribunal or an Appellate Tribunal” (w.e.f. 17-1-2000). 
2. Subs. by s. 6, ibid., for  “the said Presiding Officers shall be varied to their” (w.e.f. 17-1-2000). 
3. Subs. by s. 2, ibid., for “the Presiding Officer of a Tribunal or an Appellate Tribunal” (w.e.f. 17-1-2000). 
4 Subs. by s. 7, ibid., for  “the said Presiding Officer” (w.e.f. 17-1-2000). 
5. Subs. by s. 2, ibid., for “the Presiding Officer of an Appellate Tribunal” (w.e.f. 17-1-2000). 
6. Subs. by s. 7, ibid., for “the Presiding Officer concerned” (w.e.f. 17-1-2000). 
7. Ins. by Act 1 of 2013, s. 13 (w.e.f. 15-1-2013). 
8. Subs. by Act 1 of 2000, s. 7, for “the aforesaid Presiding Officer” (w.e.f. 17-1-2000). 

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1[15A. Qualifications, terms and conditions of service of Chairperson.—Notwithstanding anything contained 
in  this  Act,  the  qualifications,  appointment,  term  of  office,  salaries  and  allowances,  resignation,  removal  and  the 
terms and conditions of service of the Chairperson of the Appellate Tribunal appointed after the commencement of 
2[the Tribunal Reforms Act, 2021, shall be governed by the provisions of Chapter II of the said Act]:  

Provided that the Chairperson appointed before the commencement of Part XIV of Chapter VI of the Finance 
Act, 2017 (7 of 2017), shall continue to be governed by the provisions of this Act, and the rules made thereunder as 
if the provisions of section 184 of the Finance Act, 2017 had not come into force.] 

16.  Orders  constituting  Tribunal  or  an  Appellate  Tribunal  to  be  final  and  not  to  invalidate  its 
proceedings.—No order of the Central Government appointing any person as  3[the Presiding Officer of a Tribunal 
or  the  Chairperson of an  Appellate  Tribunal] shall be called in question in any  manner, and no act or proceeding 
before a Tribunal or an Appellate Tribunal shall be called in question in any manner on the ground merely of any 
defect in the constitution of a Tribunal or an Appellate Tribunal. 

CHAPTER III 

JURISDICTION, POWERS AND AUTHORITY OF TRIBUNALS 

17.  Jurisdiction,  powers  and  authority  of  Tribunals.—(1)  A  Tribunal  shall  exercise,  on  and  from  the 
appointed  day,  the  jurisdiction,  powers  and  authority  to  entertain  and  decide  applications  from  the  banks  and 
financial institutions for recovery of debts due to such banks and financial institutions. 

4[(1A) Without prejudice to sub-section (1),— 

(a)  the  Tribunal  shall  exercise,  on  and  from  the  date  to  be  appointed  by  the  Central  Government,  the 
jurisdiction,  powers  and  authority  to  entertain  and  decide  applications  under  Part  III  of  Insolvency  and 
Bankruptcy Code, 2016 (31 of 2016). 

(b) the Tribunal shall have circuit sittings in all district headquarters.] 

(2) An Appellate Tribunal shall exercise, on and from the appointed day, the jurisdiction, powers and authority 

to entertain appeals against any order made, or deemed to have been made, by a Tribunal under this Act. 

 4[(2A) Without prejudice to sub-section (2), the Appellate Tribunal shall exercise, on and from the date to be 
appointed by the Central Government, the jurisdiction, powers and  authority to entertain appeals against the order 
made by the Adjudicating Authority under Part III of the Insolvency and Bankruptcy Code, 2016 (31 of 2016).] 

5[17A.  Power  of  Chairperson  of  Appellate  Tribunal.—(1)  The  Chairperson  of  an  Appellate  Tribunal  shall 
exercise general power of superintendence and control over the Tribunals under his jurisdiction including the power 
of appraising the work and recording the annual confidential reports of Presiding Officers. 

6[(1A)  For  the  purpose  of  exercise  of  general  powers  of  superintendence  and  control  over  Tribunals  under          

sub-section (1), the Chairperson may— 

(i) direct the Tribunals to furnish, in such form, at such intervals and within such time, information relating 
to  pending  cases  both  under  this  Act  and  the  Securitisation  and  Reconstruction  of  Financial  Assets  and 
Enforcement  of  Security  Interest  Act,  2002 (54  of  2002), or  under  any  other  law  for  the  time  being  in  force, 
number  of  cases  disposed  of,  number  of  new  cases  filed  and  such  other  information  as  may  be  considered 
necessary by the Chairperson; 

(ii) convene meetings of the Presiding Officers of Tribunals periodically to review their performance.  

(1B)  Where  on  assessment  of  the  performance  of  any  Presiding  Officer  of  the  Tribunal  or  otherwise,  the 
Chairperson  is  of  the  opinion  that  an  inquiry  is  required  to  be  initiated  against  such  Presiding  Officer  for 
misbehaviour or incapacity, he shall submit a report to the Central Government recommending action against such 
Presiding Officer, if any, under section 15, and for reasons to be recorded in writing for the same.] 

1. Ins. by Act 7 of 2017, s. 179 (w.e.f. 26-5-2017). 
2. Subs. by Act 33 of 2021, s. 18, for “Part XIV of Chapter VI of the Finance Act, 2017 (7 of 2017), shall be governed by the 

provisions of section 184 of that Act” (w.e.f. 4-4-2021). 

3. Subs. by Act 1 of 2000, s. 2, for “the Presiding Officer of a Tribunal or an Appellate Tribunal” (w.e.f. 17-1-2000). 
4. Ins. by Act 31 of 2016, s. 249 and the Fifth Schedule (w.e.f. 1-12-2019). 
5. Ins. by Act 1 of 2000, s. 8 (w.e.f. 17-1-2000). 
6. Ins. by Act 44 of 2016, s. 31 (w.e.f. 1-9-2016). 

8 

 
                                                           
(2)  The  Chairperson  of  an  Appellate  Tribunal  having  jurisdiction  over  the  Tribunals  may,  on  the 
application of any of the parties or on his own motion after notice to the parties and after hearing them, 
transfer any case from one Tribunal for disposal to any other Tribunal.] 

18. Bar of jurisdiction.—On and from the appointed day, no court or other authority shall have, or 
be entitled to exercise, any jurisdiction, powers or authority (except the Supreme Court, and a High Court 
exercising jurisdiction under articles 226 and 227 of the Constitution) in relation to the matters specified 
in section 17: 

1[Provided  that  any  proceedings  in  relation  to  the  recovery  of  debts  due  to  any  multi-State                         

co-operative bank pending before the date of commencement of the Enforcement of Security Interest and 
Recovery  of  Debts  Laws  (Amendment)  Act,  2012  (1  of  2013)  under  the  Multi-State  Co-operative 
Societies Act, 2002 (39 of 2002) shall be continued and nothing contained in this section shall, after such 
commencement, apply to such proceedings.] 

CHAPTER IV 
PROCEDURE OF TRIBUNALS 

2[19. Application to the Tribunal.—(1) Where a bank or a financial  institution has to recover any 
debt  from  any  person,  it  may  make  an  application  to  the  Tribunal  within  the  local  limits  of  whose 
jurisdiction— 

3[(a) the branch or any other office of the bank or financial institution is maintaining an account 

in which debt claimed is outstanding, for the time being; or] 

4[(aa)]  the  defendant,  or  each  of  the  defendants  where  there  are  more  than  one,  at  the  time  of 
making the application, actually and voluntarily resides, or carries on business, or personally works 
for gain; or 

(b) any of the defendants, where there are more than one, at the time of making the application, 

actually and voluntarily resides, or carries on business, or personally works for gain; or 

(c) the cause of action, wholly or in part, arises: 

5[Provided  that  the  bank  or  financial  institution  may,  with  the  permission  of  the  Debts  Recovery 
Tribunal,  on  an  application  made  by  it,  withdraw  the  application,  whether  made  before  or  after  the 
Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Act, 2004 (30 of 2004) for 
the  purpose  of  taking  action  under  the  Securitisation  and  Reconstruction  of  Financial  Assets  and 
Enforcement of Security Interest Act, 2002 (54 of 2002), if no such action had been taken earlier under 
that Act: 

Provided  further  that  any  application  made  under  the  first  proviso  for  seeking  permission  from  the 
Debts Recovery Tribunal to withdraw the application made under sub-section (1) shall be dealt with by it 
as expeditiously as possible and disposed of within thirty days from the date of such application: 

Provided also that in case the Debts Recovery Tribunal refuses to grant permission for withdrawal of 

the application filed under this sub-section, it shall pass such orders after recording the reasons therefor.] 

6[(1A) Every bank being, multi-State co-operative bank referred to in sub-clause (vi) of clause (d) of 
section 2, may, at its option, opt to initiate proceedings under the Multi-State Co-operative Societies Act, 
2002  (39  of  2002)  to  recover  debts,  whether  due  before  or  after  the  date  of  commencement  of  the 
Enforcement of the Security Interest and Recovery of Debts Laws (Amendment) Act, 2012 (1 of 2013) 
from any person instead of making an application under this Chapter. 

(1B) In case, a bank being, multi-State co-operative bank referred to in sub-clause (vi) of clause (d) of 
section 2 has filed an application under this Chapter and subsequently opts to withdraw the application for 
the purpose of initiating proceeding under the Multi-State Co-operative Societies Act, 2002 (39 of 2002) 
to  recover  debts,  it  may  do  so  with  the  permission  of  the  Tribunal  and  every  such  application  seeking 
permission from the Tribunal to withdraw the application made under sub-section (1A) shall be dealt with 
by it as expeditiously as possible and disposed of within thirty days from the date of such application: 

Provided that in case the Tribunal refuses to grant permission for withdrawal of the application filed 

under this sub-section, it shall pass such orders after recording the reasons therefor.] 

1. Ins. by Act 1 of 2013, s. 14 (w.e.f. 15-1-2013). 
2. Subs. by Act 1 of 2000, s. 9, for section 19 (w.e.f. 17-1-2000). 
3. Ins. by Act 44 of 2016, s. 32 (w.e.f. 1-9-2016). 
4. Clause (a) renumbered as clause (aa) thereof by s. 32, ibid. (w.e.f. 1-9-2016). 
5. Ins. by Act 30 of 2004, s. 20 (w.e.f. 11-11-2004). 
6. Ins. by Act 1 of 2013, s. 15 (w.e.f. 15-1-2013). 

9 

 
                                                           
(2) Where a bank or a financial institution, which has to recover its debt from any person, has filed an 
application to the Tribunal under sub-section (1) and against the same person another bank or financial 
institution  also  has  claim  to  recover  its  debt,  then,  the  later  bank  or  financial  institution  may  join  the 
applicant bank or financial institution at any stage of the proceedings, before the final order is passed, by 
making an application to that Tribunal. 

1[(3)  Every  application  under  sub-section  (1)  or  sub-section  (2)  shall  be  in  such  form,  and  shall  be 
accompanied with true copies of all documents relied on in support of the claim along with such fee, as 
may be prescribed:] 

Provided that the fee may be prescribed having regard to the amount of debt to be recovered: 
Provided  further  that  nothing  contained  in  this  sub-section  relating  to  fee  shall  apply  to  cases 

transferred to the Tribunal under sub-section (1) of section 31. 

2[Explanation.—For  the  purposes  of  this  section,  documents  includes  statement  of  account  or  any 

entry in banker’s book duly certified under the Bankers’ Books Evidence Act, 1891 (18 of 1891).] 

2[(3A) Every applicant in the application filed under sub-section (1) or sub-section (2) for recovery of 

debt, shall— 

(a) state particulars of the debt secured by security interest over properties or assets belonging to 

any of the defendants and the estimated value of such securities; 

(b) if the estimated value of securities is not sufficient to satisfy the debt claimed, state particulars 

of any other properties or assets owned by any of the defendants, if any; and 

(c) if the estimated value of such other assets is not sufficient to recover the debt, seek an order 
directing the defendant to disclose to the Tribunal particulars of other properties or assets owned by 
the defendants.] 
3[  4[(3B)] If any application filed before the Tribunal for recovery of any debt is settled prior to the 
commencement  of  the  hearing  before  that  Tribunal  or  at  any  stage  of  the  proceedings  before  the  final 
order  is  passed,  the  applicant  may  be  granted  refund  to  the  fees  paid  by  him  at  such  rates  as  may  be 
prescribed.] 

5[(4)  On  receipt  of  application  under  sub-section  (1)  or  sub-section  (2),  the  Tribunal  shall  issue 

summons with following directions to the defendant— 

(i) to show cause within thirty days of the service of summons as to why relief prayed for should 

not be granted; 

(ii)  direct  the  defendant  to  disclose  particulars  of  properties  or  assets  other  than  properties  and 

assets specified by the applicant under clauses (a) and (b) of sub-section (3A); and 

(iii)  to  restrain  the  defendant  from  dealing  with  or  disposing  of  such  assets  and  properties 
disclosed under clause (c) of sub-section (3A) pending the hearing and disposal of the application for 
attachment of properties.] 
6[(4A)  Notwithstanding  anything  contained  in  section  65A  of  the  Transfer  of  Property  Act,  1882             

(4 of 1882), the defendant, on service of summons, shall not transfer by way of sale, lease or otherwise 
except in the ordinary course of his business any of the assets over which security interest is created and 
other properties and assets specified or disclosed under sub-section (3A), without the prior approval of the 
Tribunal: 

Provided that the Tribunal shall not grant such approval without giving notice to the applicant bank or 

financial institution to show cause as to why approval prayed for should not be granted: 

Provided  further  that  defendant  shall  be  liable  to  account  for  the  sale  proceeds  realised  by  sale  of 
secured assets in the ordinary course of business and deposit such sale proceeds in the account maintained 
with the bank or financial institution holding security interest over such assets.] 

7[(5)  (i)  the  defendant  shall  within  a  period  of  thirty  days  from  the  date  of  service  of  summons, 

present  a  written  statement  of  his  defence  including  claim  for  set-off  under  sub-section  (6)  or  a              

1. Subs. by Act 44 of 2016, s. 32, for sub-section (3) (w.e.f. 1-9-2016). 
2. Ins. by s. 32, ibid. (w.e.f. 1-9-2016). 
3. Ins. by Act 1 of 2013, s. 15 (w.e.f. 15-5-2013). 
4. Sub-section (3A) renumbered as sub-section (3B) thereof by Act 44 of 2016, s. 32 (w.e.f. 1-9-2016). 
5.  Subs. by Act 44 of 2016, s. 32, for sub-section (4) (w.e.f. 1-9-2016). 
6.  Ins. by s. 32, ibid. (w.e.f. 1-9-2016). 
7.   Subs. by s. 32, ibid., for sub-section (5) (w.e.f. 1-9-2016). 

10 

 
                                                           
counter-claim under sub-section (8), if any, and such written statement shall be accompanied with original 
documents or true copies thereof with the leave of the Tribunal, relied on by the defendant in his defence: 

Provided that where the defendant fails to file the written statement within the said period of thirty 
days,  the  Presiding  Officer  may,  in  exceptional  cases  and  in  special  circumstances  to  be  recorded  in 
writing,  extend  the  said  period  by  such  further  period  not  exceeding  fifteen  days  to  file  the  written 
statement of his defence; 

(ii) where the defendant makes a disclosure of any property or asset pursuant to orders passed by the 

Tribunal, the provisions of sub-section (4A) of this section shall apply to such property or asset; 

(iii) in case of non-compliance of any order made under clause (ii) of sub-section (4), the Presiding 
Officer may, by an order, direct that the person or officer who is in default, be detained in civil prison for 
a term not exceeding three months unless in the meantime the Presiding Officer directs his release: 

Provided  that  the  Presiding  Officer  shall  not  pass  an  order  under  this  clause  without  giving  an 

opportunity of being heard to such person or officer. 

Explanation.—For the purpose of this section, the expression  ‘officer who is in default’ shall mean 

such officer as defined in clause (60) of section 2 of the Companies Act, 2013 (18 of 2013).] 

1[(5A) On receipt of the written statement of defendant or on expiry of time granted by the Tribunal to 
file the written statement, the Tribunal shall fix a date of hearing for admission or denial of documents 
produced  by  the  parties  to  the  proceedings  and  also  for  continuation  or  vacation  of  the  interim  order 
passed under sub-section (4). 

(5B) Where a defendant makes an admission of the full or part of the amount of debt due to a bank or 
financial  institution,  the  Tribunal  shall  order  such  defendant  to  pay  the  amount,  to  the  extent  of  the 
admission within a period of thirty days from the date of such order failing which the Tribunal may issue 
a certificate in accordance with the provisions of sub-section (22) to the extent of the amount of debt due 
admitted by the defendant.] 

(6)  Where  the  defendant  claims  to  set-off  against  the  applicant’s  demand  any  ascertained  sum  of 
money  legally  recoverable  by  him  from  such  applicant,  the  defendant  may,  at  the  first  hearing  of  the 
application,  but  not  afterwards  unless  permitted  by the Tribunal,  present  a  written statement  containing 
the  particulars  of  the  debt  2[the  debt  sought  to  be  set-off  along  with  original  documents  and  other 
evidence relied on in support of claim of set-off in relation to any ascertained sum of money, against the 
applicant]. 

(7)  The  written  statement  shall  have  the  same  effect  as  a  plaint  in  a  cross-suit  so  as  to  enable  the 

Tribunal to pass a final order in respect both of the original claim and of the set-off. 

(8)  A  defendant  in  an  application  may,  in  addition  to  his  right  of  pleading  a  set-off  under                       

sub-section (6), set up, by way of counter-claim against the claim of the applicant, any right or claim in 
respect of a cause of action accruing to the defendant against the applicant either before or after the filing 
of  the  application  but  before  the  defendant  has  delivered  his  defence  or  before  the  time  limited  for 
delivering his defence has expired, whether such counter-claim is in the nature of a claim for damages or 
not. 

(9) A counter-claim under sub-section (8) shall have the same effect as a cross-suit so as to enable the 

Tribunal  to  pass  a  final  order  on  the  same  application,  both  on  the  original  claim  and  on  the            
counter-claim. 

(10) The applicant shall be at liberty to file a written statement in answer to the counter-claim of the 

defendant within such period 3[as may be prescribed]. 

4[(10A)  Every  application  under  sub-section  (3)  or  written  statement  of  defendant  under                       

sub-section (5) or claim of set-off under sub-section (6) or a counter-claim under sub-section (8) by the 
defendant, or written statement by the applicant in reply to the counter-claim, under sub-section (10) or 
any other pleading whatsoever, shall be supported by an affidavit sworn in by the applicant or defendant 

1. Subs. by Act 44 of 2016, s. 32, for sub-section (5A) (w.e.f. 1-9-2016). 
2. Subs. by s. 32, ibid., for “the dept sought to be set-off” (w.e.f. 1-9-2016). 
3. Subs. by s. 32, ibid., for “as may be fixed by the Tribunal” (w.e.f. 1-9-2016). 
4. Ins. by s. 32, ibid. (w.e.f. 1-9-2016). 

11 

 
                                                           
verifying all the facts and pleadings, the statements pleading documents and other documentary evidence 
annexed to the application or written statement or reply to set-off or counter-claim, as the case may be: 

Provided  that  if  there  is  any  evidence  of  witnesses  to  be  led  by  any  party,  the  affidavits  of  such 
witnesses shall be filed simultaneously by the party with the application or written statement or replies 
filed under sub-section (10A). 

(10B)  If  any  of  the facts  or  pleadings in  the  application  or  written  statement are  not  verified  in  the 
manner provided under sub-section (10A), a party to the proceedings shall not be allowed to rely on such 
facts or pleadings as evidence or any of the matters set out therein.] 

1[(11) Where a defendant sets up a counter-claim in the written statement and in reply to such claim 
the applicant contends that the claim thereby raised ought not to be disposed of by way of counter-claim 
but in an independent action, the Tribunal shall decide such issue along with the claim of the applicant for 
recovery of the debt.] 

2* 

* 

* 

* 

* 

 (13)(A)  Where,  at  any  stage  of  the  proceedings,  3[the  Tribunal  on  an  application  made  by  the 
applicant  along  with  particulars  of  property  to  be  attached  and  estimated  value  thereof,  or  otherwise  is 
satisfied], that the defendant, with intent to obstruct or delay or frustrate the execution of any order for the 
recovery of debt that may be passed against him,— 

(i) is about to dispose of the whole or any part of his property; or 

(ii)  is  about  to  remove  the  whole  or  any  part  of  his  property  from  the  local  limits  of  the 

jurisdiction of the Tribunal; or 

(iii)  is  likely  to  cause  any  damage  or  mischief  to  the  property  or  affect  its  value  by  misuse  or 

creating third party interest, 

the Tribunal may direct the defendant, within a time to be fixed by it, either to furnish security, in such 
sum as may be specified in the order, to produce and place at the disposal of the Tribunal, when required, 
the  said  property  or  the  value  of  the  same,  or  such  portion  thereof  as  may  be  sufficient  to  satisfy  the 
certificate for the recovery of the debt, or to appear and show cause why he should not furnish security. 

(B) Where the defendant fails to show cause why he should not furnish security, or fails to furnish the 
security  required,  within  the  time  fixed  by  the  Tribunal,  the  Tribunal  may  order  the  attachment  of  the 
whole or such portion of the properties claimed by the applicant as the properties secured in his favour or 
otherwise owned by the defendant as appears sufficient to satisfy any certificate for the recovery of debt. 

4* 

* 

* 

* 

* 

(15) The Tribunal may also in the order direct the conditional attachment of the whole or any portion 

of the property specified under 5[sub-section (13)]. 

(16)  If  an  order  of  attachment  is  made  without  complying  with  the  provisions  of  sub-section  (13), 

such attachment shall be void. 

(17) In the case of disobedience of an order made by the Tribunal under sub-sections (12), (13) and 
(18) or breach of any of the terms on which the order was made, the Tribunal may order the properties of 
the  person  guilty  of  such  disobedience  or  breach  to  be  attached  and  may  also  order  such  person  to  be 
detained in the civil prison for a term not exceeding three months, unless in the meantime the Tribunal 
directs his release. 

(18) Where it appears to the Tribunal to be just and convenient, the Tribunal may, by order— 

(a) appoint a receiver of any property, whether before or after grant of certificate for recovery of 

debt; 

(b) remove any person from the possession or custody of the property; 

1. Subs. by Act 44 of 2016, s. 32, for sub-section (11) (w.e.f. 1-9-2016). 
2. Omitted by s. 32, ibid. (w.e.f. 1-9-2016). 
3. Subs. by s. 32, ibid., for “the Tribunal is satisfied, by affidavit or otherwise” (w.e.f. 1-9-2016). 
4. Omitted by s. 32, ibid. (w.e.f. 1-9-2016). 
5. Subs. by s. 32, ibid., for “sub-section (14)” (w.e.f. 1-9-2016). 

12 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
(c) commit the same to the possession, custody or management of the receiver; 
(d) confer upon the receiver all such powers, as to bringing and defending suits in the courts or 
filing and defending applications before the Tribunal and for the realisation, management, protection, 
preservation  and  improvement  of  the  property,  the  collection  of  the  rents  and  profits  thereof,  the 
application  and  disposal  of  such  rents  and  profits,  and  the  execution  of  documents  as  the  owner 
himself has, or such of those powers as the Tribunal thinks fit; and 

(e) appoint a Commissioner for preparation of an inventory of the properties of the defendant or 

for the sale thereof. 
1[(19) Where a certificate of recovery is issued against a company  as defined  under the Companies 
Act, 2013 (18 of 2013) and such company is under liquidation, the Tribunal may by an order direct that 
the  sale  proceeds  of  secured  assets  of  such  company  be  distributed  in  the  same  manner  as  provided  in 
section 326 of the Companies Act, 2013 or under any other law for the time being in force.] 

2[(20) The Tribunal may, after giving the applicant and the defendant, an opportunity of being heard, 
in respect  of  all claims,  set-off  or counter-claim,  if  any,  and  interest  on  such  claims,  within thirty  days 
from the date of conclusion of the hearings, pass interim or final order as it deems fit which may include 
order for payment of interest from the date on which payment of the amount is found due up to the date of 
realisation or actual payment.] 

3[(20A) Where it is proved to the satisfaction of the Tribunal that the claim of the applicant has been 
adjusted wholly or in part by any lawful agreement or compromise in writing and signed by the parties or 
where  the  defendant  has  repaid  or  agreed  to  repay  the  claim  of  the  applicant,  the  Tribunal  shall  pass 
orders recording such agreement, compromise or satisfaction of the claim.] 

4[(20AA) While passing the final order under sub-section (20), the Tribunal shall clearly specify the 
assets of the borrower which security interest is created in favour of any bank or financial institution and 
direct  the  Recovery  Officers  to  distribute  the  sale  proceeds  of  such  assets  as  provided  in                              
sub-section (20AB). 

(20AB) Notwithstanding anything to the contrary contained in any law for the time being in force, the 

proceeds from sale of secured assets shall be distributed in the following orders of priority, namely:— 

(i)  the  costs  incurred  for  preservation  and  protection  of  secured  assets,  the  costs  of  valuation, 

public notice for possession and auction and other expenses for sale of assets shall be paid in full; 

(ii) debts owed to the bank or financial institution. 

Explanation.—For  the  purposes  of  this  sub-section,  it  is  hereby  clarified  that  on  or  after  the 
commencement of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), in cases where  insolvency 
and bankruptcy proceedings are pending in respect of secured assets of the borrower, the distribution of 
proceeds from the sale of secured assets shall be subject to the order of priority as provided in that Code.] 
5[(21) (i) The Tribunal shall send a copy of its final order and the recovery certificate, to the applicant 

and defendant. 

(ii) The applicant and the defendant may obtain copy of any order passed by the Tribunal on payment 

on such fee as may be prescribed.] 

6[(22)  The  Presiding  Officer  shall  issue  a  certificate  of  recovery  along  with  the  final  order,  under           

sub-section  (20),  for  payment  of  debt  with  interest  under  his  signature  to  the  Recovery  Officer  for 
recovery of the amount of debt specified in the certificate.] 

7[(22A)  Any  recovery  certificate  issued  by  the  Presiding  Officer  under  sub-section  (22)  shall  be 
deemed to be decree or order of the Court for the purposes of initiation of winding up proceedings against 
a  company  registered  under  the  Companies  Act,  2013  (18  of  2013)  or  Limited  Liability  Partnership 
registered  under  the  Limited  Liability  Partnership  Act,  2008  (6  of  2009)  or  insolvency  proceedings 
against any individual or partnership firm under any law for the time being in force, as the case may be.] 

1. Subs. by Act 44 of 2016, s. 32, for sub-section (19) (w.e.f. 1-9-2016). 
2. Subs. by s. 32, ibid., for sub-section (20) (w.e.f. 1-9-2016). 
3. Ins. by Act 1 of 2013, s. 15 (w.e.f. 15-1-2013). 
4. Ins. by Act 44 of 2016, s. 32 (w.e.f. 1-9-2016). 
5. Subs. by s. 32, ibid., for sub-section (21) (w.e.f. 1-9-2016). 
6. Subs. by s. 32, ibid., for sub-section (22) (w.e.f. 1-9-2016). 
7. Ins. by s. 32, ibid. (w.e.f. 1-9-2016). 

13 

 
                                                           
(23) Where the Tribunal, which has issued a certificate of recovery, is satisfied that the  property is 
situated within the local limits of the jurisdiction of two or more Tribunals, it may send the copies of the 
certificate of recovery for execution to such other Tribunals where the property is situated: 

Provided that in a case where the Tribunal to which the certificate of recovery is sent for execution 
finds that it has no jurisdiction to comply with the certificate of recovery, it shall return the same to the 
Tribunal which has issued it. 

(24) The application made to the Tribunal under sub-section (1) or sub-section (2) shall be dealt with 
by it as expeditiously as possible and 1[every effort shall be made by it to complete the proceedings in two 
hearings, and] to dispose of the application finally within one hundred and eighty days from the date of 
receipt of the application. 

(25) The Tribunal may made such orders and give such directions as may be necessary or expedient 

to give effect to its orders or to prevent abuse of its process or to secure the ends of justice.] 

2[19A.  Filing  of  recovery  applications,  documents  and  written  statements  in  electronic             

form.—(1) Notwithstanding anything to the contrary contained in this Act, and without prejudice to the 
provisions  contained  in  section  6  of  the  Information  Technology  Act,  2000  (21  of  2000),  the  Central 
Government may by rules provide that from such date and before such Tribunal and Appellate Tribunal, 
as may be notified,— 

(a)  application  or  written  statement  or  any  other  pleadings  and  the  documents  to  be  annexed 
thereto  required  to  be  filed  shall  be  submitted  in  the  electronic  form  and  authenticated  with  digital 
signature  of  the  applicant,  defendant  or  any  other  petitioner  in  such  form  and  manner  as  may  be 
prescribed; 

(b)  any  summons,  notice  or  communication  or  intimation  as  may  be  required  to  be  served  or 
delivered under this Act, may be served or delivered by transmission of pleadings and documents by 
electronic form and authenticated in such manner as may be prescribed. 

(2) Any interim or final order passed by the Tribunal or Appellate Tribunal displayed on the website 
of  such  Tribunal  or  Appellate  Tribunal  shall  be  deemed  to  be  a  public  notice  of  such  order  and 
transmission  of  such  order  by  electronic  mail  to  the  registered  address  of  the  parties  to  the  proceeding 
shall be deemed to be served on such party. 

(3) The Central Government may by rules provide that the electronic form for the purpose specified 

in this section shall be exclusive, or in the alternative or in addition to the physical form, therefor. 

(4) The Tribunal or the Appellate Tribunal notified under sub-section (1), for the purpose of adopting 
electronic filing, shall maintain its own website or common website with other Tribunals and  Appellate 
Tribunal  or  such  other  universally  accessible  repositories  of  electronic  information  and  ensure  that  all 
orders  or  directions  issued  by  the  Tribunal  or  Appellate  Tribunal  are  displayed  on  the  website  of  the 
Tribunal or Appellate Tribunal, in such manner as may be prescribed. 

Explanation.—For the purpose of this section,— 

(a) ‘digital signature’ means the digital signature as defined under clause (p) of section 2 of the 

Information Technology Act, 2000 (21 of 2000); 

(b) ‘electronic form’ with reference to an information or a document means the electronic form as 

defined under clause (r) of section 2 of the Information Technology Act, 2000 (21 of 2000).] 

 *[19A.  —The  application  made  to  Tribunal  for  exercising  the  powers  of  the  Adjudicating  Authority 
under the Insolvency and Bankruptcy Code, 2016 shall be dealt with in the manner as provided under that 
Code.] 

1. Subs. by Act 44 of 2016, s. 32, for “endeavour shall be made by it” (w.e.f. 1-9-2016). 
2. Ins. by s. 33, ibid. (w.e.f. 1-9-2016). 
*. Ins. by Act 31 of 2016, s. 249 and the Fifth Schedule (w.e.f. 1-12-2019 in so far as it relates to personal guarantors to corporate 
debtors). 

14 

 
                                                           
20.  Appeal  to  the  Appellate  Tribunal.—(1)  Save  as  provided  in  sub-section  (2),  any  person 
aggrieved by an order made, or deemed to have been made, by a Tribunal under this Act, may prefer an 
appeal to an Appellate Tribunal having jurisdiction in the matter. 

(2) No appeal shall lie to the Appellate Tribunal from an order made by a Tribunal with the consent of 

the parties. 

(3) Every appeal under sub-section (1) shall be filed within a period of 1[thirty days] from the date on 
which a copy of the order made, or deemed to have been made, by the Tribunal is received by him and it 
shall be in such form and be accompanied by such fee as may be prescribed: 

Provided  that  the  Appellate  Tribunal  may  entertain  an  appeal  after the  expiry  of  the  said  period  of 

1[thirty days] if it is satisfied that there was sufficient cause for not filing it within that period. 

(4)  On  receipt  of  an  appeal  under  sub-section  (1),  2[or  under  sub-section  (1)  of  section  181  of  the 
Insolvency and Bankruptcy Code, 2016 (31 of 2016)] the Appellate Tribunal may, after giving the parties 
to  the  appeal,  an  opportunity  of  being  heard,  pass  such  orders  thereon  as  it  thinks  fit,  confirming, 
modifying or setting aside the order appealed against. 

(5) The Appellate Tribunal shall send a copy of every order made by it to the parties to the appeal and 

to the concerned Tribunal. 

(6) The appeal filed before the Appellate Tribunal under sub-section (1) shall be dealt with by it as 
expeditiously  as  possible and  endeavour  shall  be  made  by  it  to  dispose  of the appeal  finally  within  six 
months from the date of receipt of the appeal. 

21. Deposit of amount of debt due, on filing appeal.—Where an appeal is preferred by any person 
from  whom  the  amount  of  debt  is  due  to  a  bank  or  a  financial  institution  or  a  consortium  of  banks  or 
financial institutions, such appeal shall not be entertained by the Appellate Tribunal unless such person 
has  deposited  with  the  Appellate  Tribunal  3[fifty  per  cent.]  of  the  amount  of  debt  so  due  from  him  as 
determined by the Tribunal under section 19: 

Provided that the Appellate Tribunal may, for reasons to be recorded in writing,  4[reduce the amount 
to be deposited by such amount which shall not be less than twenty-five per cent. of the amount of such 
debt so due] to be deposited under this section. 

22. Procedure and powers of the Tribunal and the Appellate Tribunal.—(1) The Tribunal and the 

Appellate  Tribunal  shall  not  be  bound  the  procedure  laid  down  by  the  Code  of  Civil  Procedure,             
1908  (5  of  1908),  but  shall  be  guided  by  the  principles  of  natural  justice  and,  subject  to  the  other 
provisions  of  this  Act  and  of  any  rules,  the  Tribunal  and  the  Appellate  Tribunal  shall  have  powers  to 
regulate their own procedure including the places at which they shall have their sittings. 

(2)  The  Tribunal  and  the  Appellate  Tribunal  shall  have,  for  the  purposes  of  discharging  their 
functions under this Act, the same powers as are vested in a civil court under the Code of Civil Procedure, 
1908 (5 of 1908), while trying a suit, in respect of the following matters, namely:— 

(a) summoning and enforcing the attendance of any person and examining him on oath; 

(b) requiring the discovery and production of documents; 

(c) receiving evidence on affidavits; 

(d) issuing commissions for the examination of witnesses or documents; 

(e) reviewing its decisions; 

(f) dismissing an application for default or deciding it ex parte; 

(g) setting aside any order of dismissal of any application for default or any order passed  by it        

ex parte; 

(h) any other matter which may be prescribed. 

1. Subs. by Act 44 of 2016, s. 34, for “forty-five days” (w.e.f. 1-9-2016). 
2. Ins. by Act 31 of 2016, s. 249 and the Fifth Schedule (w.e.f. 1-12-2019). 
3. Subs. by Act 44 of 2016, s. 35, for “seventy-five per cent.” (w.e.f. 1-9-2016). 
4. Subs. by s. 35, ibid., for “waive or reduce the amount” (w.e.f. 1-9-2016). 

15 

 
                                                           
(3)  Any  proceeding  before  the  Tribunal  or  the  Appellate  Tribunal  shall  be  deemed  to  be  a  judicial 
proceeding within the meaning of sections 193 and 228, and for the purposes of section 196, of the Indian 
Penal Code (45 of 1860) and the Tribunal or the Appellate Tribunal shall be deemed to be a civil court for 
all the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 1974). 

1[(4)  For  the  purpose  of  proof  of  any  entry  in  the  ‘bankers  books’,  the  provisions  of  the  Bankers’ 
Books  Evidence  Act,  1891  (18  of  1891)  shall  apply  to  all  the  proceedings  before  the  Tribunal  or 
Appellate Tribunal.] 

2[22A.  Uniform  procedure  for  conduct  of  proceedings.—The  Central  Government  may,  for  the 
purpose of this Act, by rules, lay down uniform procedure consistent with the provisions of this Act for 
conducting the proceedings before the Tribunals and Appellate Tribunals.] 

23.  Right to  legal representation  and Presenting Officers.—(1)  A  bank  or  a financial  institution 
making  an  application  to  a  Tribunal  or  an  appeal  to  an  Appellate  Tribunal  may  authorise  one  or  more 
legal practitioners or any of its officers to act as Presenting Officers and every person so authorised by it 
may present its case before the Tribunal or the Appellate Tribunal. 

(2) The defendant may either appear in person or authorise one or more legal practitioners or any of 

his or its officers to present his or its case before the Tribunal or the Appellate Tribunal. 

24. Limitation.—The provisions of the Limitation Act, 1963 (36 of 1963), shall, as far as may be, 

apply to an application made to a Tribunal. 

CHAPTER V 

RECOVERY OF DEBT DETERMINED BY TRIBUNAL 

25.  Modes  of  recovery  of  debts.—The  Recovery  Officer  shall,  on  receipt  of  the  copy  of  the 
certificate  under  sub-section  (7)  of  section  19,  proceed  to  recover  the  amount  of  debt  specified  in  the 
certificate by one or more of the following modes, namely:— 

(a) attachment and sale of the movable or immovable property of the defendant; 
3[(aa) taking possession of property over which security interest is created or any other property 

of the defendant and appointing receiver for such property and to sell the same;] 

(b) arrest of the defendant and his detention in prison; 

(c)  appointing  a  receiver  for  the  management  of  the  movable  or  immovable  properties  of  the 

defendant; 

3[(d) any other mode of recovery as may be prescribed by the Central Government.] 

26.  Validity  of  certificate  and  amendment  thereof.—(1)  It  shall  not  be  open  to  the  defendant  to 
dispute  before  the  Recovery  Officer  the  correctness  of  the  amount  specified  in  the  certificate,  and  no 
objection to the certificate on any other ground shall also be entertained by the Recovery Officer. 

(2) Notwithstanding the issue of a certificate to a Recovery Officer, the Presiding Officer shall have 
power  to  withdraw  the  certificate  or  correct  any  clerical  or  arithmetical  mistake  in  the  certificate  by 
sending intimation to the Recovery Officer. 

(3) The Presiding Officer shall intimate to the Recovery Officer any order withdrawing or cancelling 

a certificate or any correction made by him under sub-section (2). 

27. 

Stay 

of 

proceedings 

under 

certificate 

and 

amendment 

or  withdrawal                              

thereof.—4[(1)  Notwithstanding  that  a  certificate  has  been  issued  to  the  Recovery  Officer  for  the 
recovery of any amount, the Presiding Officer, may by an order, grant time for payment of the amount, 
provided  the  defendant  makes  a  down  payment  of  not  less  than  twenty-five  per  cent.  of  the  amount 
specified in the recovery certificate and gives an unconditional undertaking to pay the balance within a 
reasonable  time,  which  is  acceptable  to  the  applicant  bank  or  financial  institution  holding  recovery 
certificate. 

(1A)  The  Recovery  Officer  shall,  after  receipt  of  the  order  passed  under  sub-section  (1),  stay  the 

proceedings until the expiry of the time so granted. 

1. Ins. by Act 44 of 2016, s. 36 (w.e.f. 1-9-2016). 
2. Ins. by s. 37, ibid. (w.e.f. 1-9-2016). 
3. Ins. by s. 38, ibid. (w.e.f. 1-9-2016). 
4. Subs. by s. 39, ibid., for sub-section (1) (w.e.f. 1-9-2016). 

16 

 
                                                           
(1B) Where defendant agrees to pay the amount specified in the Recovery Certificate and proceeding 
are stayed by the Recovery Officer, the defendant shall forfeit right to file appeal against the orders of the 
Tribunal. 

(1C) Where the defendant commits any default in payment of the amount under sub-section (1), the 
stay of recovery proceedings shall stand withdrawn and the Recovery Officer shall take steps for recovery 
of remaining amount of debt due and payable.] 

(2) Where a certificate for the recovery of amount has been issued, the Presiding Officer shall keep 
the Recovery Officer informed of any amount paid or time granted for payment, subsequent to the issue 
of such certificate to the Recovery Officer. 

(3)  Where  the  order  giving  rise  to  a  demand  of  amount  for  recovery  of  debt  has  been  modified  in 
appeal, and, as a consequence thereof the demand is reduced, the Presiding Officer shall stay the recovery 
of such part of the amount of the certificate as pertains to the said reduction for the period for which the 
appeal remains pending. 

(4)  Where  a  certificate  for  the  recovery  of  debt  has  been  received  by  the  Recovery  Officer  and 
subsequently the amount of the outstanding demands is reduced  1[or enhanced] as a result of an appeal, 
the Presiding Officer shall, when the order which was the subject matter of such appeal has become final 
and conclusive, amend the certificate or withdraw it, as the case may be. 

28.  Other  modes  of  recovery.—(1)  Where  a  certificate  has  been  issued  to  the  Recovery  Officer 
under sub-section (7) of section 19, the Recovery Officer may, without prejudice to the modes of recovery 
specified in section 25, recover the amount of debt by any one or more of the modes provided under this 
section. 

(2) If any amount is due from any person to the defendant, the Recovery Officer may require such 
person  to deduct  from  the said amount,  the  amount  of  debt  due from  the  defendant  under  this  Act  and 
such person shall comply with any such requisition and shall pay the sum so deducted to the credit of the 
Recovery Officer: 

Provided  that  nothing  in  this  sub-section  shall  apply  to  any  part  of  the  amount  exempt  from 
attachment in execution of a decree of a civil court under section 60 of the Code of Civil Procedure, 1908 
(5 of 1908). 

(3) (i) The Recovery Officer may, at any time or from time to time, by notice in writing, require any 
person from whom money is due or may become due to the defendant or to any person who holds or may 
subsequently  hold  money  for  or  on  account  of  the  defendant,  to  pay  to  the  Recovery  Officer  either 
forthwith  upon  the  money  becoming  due  or  being  held  or  within  the  time  specified  in  the  notice  (not 
being before the money becomes due or is held) so much of the money as is sufficient to pay the amount 
of debt due from the defendant or the whole of the money when it is equal to or less than that amount. 

(ii) A notice under this sub-section may be issued to any person who holds or may subsequently hold 
any money for or on account of the defendant jointly with any other person and for the purposes of this 
sub-section, the shares of the joint holders in such amount shall be presumed, until the contrary is proved, 
to be equal. 

(iii)  A  copy  of  the  notice  shall  be  forwarded  to  the  defendant  at  his  last  address  known  to  the 
Recovery Officer and in the case of a joint account to all the joint holders at their last addresses known to 
the Recovery Officer. 

(iv) Save as otherwise provided in this sub-section, every person to whom a notice is issued under this 
sub-section shall be bound to comply with such notice, and, in particular, where any such notice is issued 
to  a  post  office,  bank,  financial  institution,  or  an  insurer,  it  shall  not  be  necessary  for  any  pass  book, 
deposit receipt, policy or any other document to be produced for the purpose of any entry, endorsement or 
the like to be made before the payment is made notwithstanding any rule, practice or requirement to the 
contrary. 

(v) Any claim respecting any property in relation to which a notice under this sub-section has been 

issued arising after the date of the notice shall be void as against any demand contained in the notice. 

1. Ins. by Act 1 of 2000, s. 10 (w.e.f. 17-1-2000). 

17 

 
                                                           
(vi) Where a person to whom a notice under this sub-section is sent objects to it by a statement on 
oath that the sum demanded or the part thereof is not due to the defendant or that he does not hold any 
money for or on account of the defendant, then, nothing contained in this sub-section shall be deemed to 
require such person to pay any such sum or part thereof, as the case may be, but if it is discovered that 
such statement was false in any material particular, such person shall be personally liable to the Recovery 
Officer to the extent of his own liability to the defendant on the date of the notice, or to the extent of the 
defendant’s liability for any sum due under this Act, whichever is less. 

(vii) The Recovery Officer may, at any time or from time to time, amend or revoke any notice under 

this sub-section or extend the time for making any payment in pursuance of such notice. 

(viii)  The  Recovery  Officer  shall  grant  a  receipt  for  any  amount  paid  in  compliance  with  a  notice 
issued under this sub-section, and the person so paying shall be fully discharged from his liability to the 
defendant to the extent of the amount so paid. 

(ix)  Any  person  discharging  any  liability  to  the  defendant  after  the  receipt  of  a  notice  under  this       

sub-section  shall  be  personally  liable  to  the  Recovery  Officer  to  the  extent  of  his  own  liability  to  the 
defendant  so  discharged  or  to  the  extent  of  the  defendant’s  liability  for  any  debt  due  under  this  Act, 
whichever is less. 

(x) If the person to whom a notice under this sub-section is sent fails to make payment in pursuance 
thereof to the Recovery Officer, he shall be deemed to be a defendant in default in respect of the amount 
specified in the notice and further proceedings may be taken against him for the realisation of the amount 
as if it were a debt due from him, in the manner provided in sections 25, 26 and 27 and the notice shall 
have the same effect as an attachment of a debt by the Recovery Officer in exercise of his powers under 
section 25. 

(4) The Recovery Officer may apply to the court in whose custody there is money belonging to the 
defendant for payment to him of the entire amount of such money, or if it is more than the amount of debt 
due, an amount sufficient to discharge the amount of debt so due. 

1[(4A)  The  Recovery  Officer  may,  by  order,  at  any  stage  of  the  execution  of  the  certificate  of 
recovery, require any person, and in case of a company, any of its officers against whom or which the 
certificate of recovery is issued, to declare on affidavit the particulars of his or its assets.] 

(5) The Recovery Officer may recover any amount of debt due from the defendant by distraint and 
sale of his movable property in the manner laid down in the Third Schedule to the Income-tax Act, 1961 
(43 of 1961). 

29. Application of certain provisions of Income-tax Act.—The provisions of the Second and Third 
Schedules to the Income-tax Act, 1961 (43 of 1961) and the Income-tax (Certificate Proceedings) Rules, 
1962, as in force from time to time shall, as far as possible, apply with necessary modifications as if the 
said  provisions  and  the  rules  referred  to  the  amount  of  debt  due  under  this  Act  instead  of  to  the         
Income-tax: 

Provided  that  any  reference  under  the  said  provisions  and  the  rules  to  the  “assessee”  shall  be 

construed as a reference to the defendant under this Act. 

2[30.  Appeal  against  the  order  of  Recovery  Officer.—(1)  Notwithstanding  anything  contained  in 
section 29, any person aggrieved by an order of the Recovery Officer made under this Act may, within 
thirty days from the date on which a copy of the order is issued to him, prefer an appeal to the Tribunal. 

(2) On receipt of an appeal under sub-section (1), the Tribunal may, after giving an opportunity to the 
appellant to be heard, and after making such inquiry as it deems fit, confirm, modify or set aside the order 
made by the Recovery Officer in exercise of his powers under sections 25 to 28 (both inclusive).] 

3[30A.  Deposit  of  amount  of  debt  due  for  filing  appeal  against  orders  of  the  Recovery              

Officer.—Where an appeal is preferred against any order of the Recovery Officer, under section 30, by 
any person from whom the amount of debt is due to a bank or financial institution or consortium of banks 
or  financial  institutions,  such  appeal  shall  not  be  entertained  by  the  Tribunal  unless  such  person  has 
deposited with the Tribunal fifty per cent. of the amount of debt due as determined by the Tribunal.] 

1. Ins. by Act 1 of 2000, s. 11 (w.e.f. 17-1-2000). 
2. Subs. by s. 12, ibid., for section 30 (w.e.f. 17-1-2000). 
3. Ins. by Act 44 of 2016, s. 40 (w.e.f. 1-9-2016). 

18 

 
                                                           
CHAPTER VI 

MISCELLANEOUS 

31.  Transfer  of  pending  cases.—(1)  Every  suit  or  other  proceeding  pending  before  any  court 
immediately before the date of establishment of a Tribunal under this Act, being a suit or proceeding the 
cause  of  action  whereon  it  is  based  is  such  that  it  would  have  been,  if  it  had  arisen  after  such 
establishment,  within  the  jurisdiction  of  such  Tribunal,  shall  stand  transferred  on  that  date  to  such 
Tribunal: 

Provided  that  nothing in this sub-section shall  apply  to  any  appeal  pending  as  aforesaid  before any 

court: 

1[Provided  further  that  any  recovery  proceedings  in  relation  to  the  recovery  of  debts  due  to  any      

multi-State co-operative bank pending before the date of commencement of the Enforcement of Security 
Interest  and  Recovery  of  Debts  Laws  (Amendment)  Act,  2012  (1  of  2013)  under  the  Multi-State            
Co-operative Societies Act, 2002 (39 of 2002), shall be continued and nothing contained in this section 
shall apply to such proceedings.] 

(2)  Where  any  suit  or  other  proceeding  stands  transferred  from  any  court  to  a  Tribunal  under                

sub-section (1),— 

(a) the court shall, as soon as may be after such transfer, forward the records of such suit or other 

proceeding to the Tribunal; and 

(b)  the  Tribunal  may,  on  receipt  of  such  records,  proceed  to  deal  with  such  suit  or  other 
proceeding,  so  far  as  may  be,  in  the  same  manner  as  in  the  case  of  an  application  made  under           
section 19 from the stage which was reached before such transfer or from any earlier stage 2*** as the 
Tribunal may deed fit. 
3[31A. Power of Tribunal to issue certificate of recovery in case of decree or order.—(1) Where a 
decree  or  order  was  passed  by  any  court  before  the  commencement  of  the  Recovery  of  Debts  Due  to 
Banks and Financial Institutions (Amendment) Act, 2000 (1 of 2000) and has not yet been executed, then, 
the decree-holder may apply to the Tribunal to pass an order for recovery of the amount. 

(2)  On  receipt  of  an  application  under  sub-section  (1),  the  Tribunal  may  issue  a  certificate  for 

recovery to a Recovery Officer. 

(3) On receipt of a certificate under sub-section (2), the Recovery Officer shall proceed to recover the 

amount as if it was a certificate in respect of a debt recoverable under this Act.] 

4[31B. Priority to secured creditors.—Notwithstanding anything contained in any other law for the 
time being in force, the rights of secured creditors to realise secured debts due and payable to them by 
sale of assets over which security interest is created, shall have priority and shall be paid in priority over 
all  other  debts  and  Government  dues  including  revenues,  taxes,  cesses  and  rates  due  to  the  Central 
Government, State Government or local authority. 

Explanation.—For  the  purposes  of  this  section,  it  is  hereby  clarified  that  on  or  after  the 
commencement of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), in cases where insolvency or 
bankruptcy  proceedings  are  pending  in  respect  of  secured  assets  of  the  borrower,  priority  to  secured 
creditors in payment of debt shall be subject to the provisions of that Code.] 

5[32. Chairperson, Presiding Officer and staff of Appellate Tribunal and Tribunal to be public 
servants.—The Chairperson of an Appellate Tribunal, the Presiding Officer of a Tribunal, the  Recovery 
Officer and other officers and employees of an Appellate Tribunal and a Tribunal shall be deemed to be 
public servants within the meaning of section 21 of the Indian Penal Code (45 of 1860).] 

33. Protection of action taken in good faith.—No suit, prosecution or other legal proceeding shall 
lie against the Central Government or against 6[the Presiding Officer of a Tribunal or the Chairperson of 

1. Ins. by Act 1 of 2013, s. 16 (w.e.f. 15-1-2013). 
2. The words “de novo” omitted by Act 1 of 2000, s. 13 (w.e.f. 17-1-2000). 
3. Ins. by s. 14, ibid. (w.e.f. 17-1-2000). 
4. Ins. by Act 44 of 2016, s. 41 (w.e.f. 1-9-2016). 
5. Subs. by Act 1 of 2000, s. 15, for section 32 (w.e.f. 17-1-2000). 
6. Subs. by s. 2, ibid., for “the Presiding Officer of a Tribunal or of an Appellate Tribunal” (w.e.f. 17-1-2000). 

19 

 
                                                           
an  Appellate  Tribunal]  or  against  the  Recovery  Officer  for  anything  which  is  in  good  faith  done  or 
intended to be done in pursuance of this Act or any rule or order made thereunder. 

34. Act to have overriding effect.—(1) Save as provided under sub-section (2), the provisions of this 
Act shall have effect notwithstanding anything inconsistent therewith contained in any other law for the 
time being in force or in any instrument having effect by virtue of any law other than this Act. 

(2)  The  provisions  of  this  Act  or  the  rules  made  thereunder  shall  be  in  addition  to,  and  not  in 
derogation of, the Industrial Finance Corporation Act, 1948 (15 of 1948), the State Financial Corporations 
Act,  1951  (63  of  1951),  the  Unit  Trust  of  India  Act,  1963  (52  of  1963),  the  Industrial  Reconstruction 
Bank of India Act, 1984 (62 of 1984),  1[, the Sick Industrial Companies (Special Provisions) Act, 1985      
(1 of 1986) and the Small Industries Development Bank of India Act, 1989 (39 of 1989)]. 

35. Power to remove  difficulties.—(1)  If  any  difficulty  arises  in  giving  effect to  the  provisions  of 
this Act, the Central Government may, by order published in the Official Gazette make such provisions, 
not inconsistent with the provisions of this Act, as appear to it to be necessary or expedient for removing 
the difficulty: 

Provided that no such order shall be made after the expiry of the period of three years from the date of 

commencement of this Act. 

(2) Every order made under this section shall, as soon as may be after it is made, be laid before each 

House of Parliament. 

36. Power  to  make rules.—(1) The  Central  Government  may,  by  notification,  make  rules  to  carry 

out the provisions of this Act. 

(2) Without prejudice to the generality of the foregoing powers, such rules may, provide for all or any 

of the following matters, namely:— 

2[(a) other business or commercial rights of similar nature under clause (jb) of section 2;] 

3[(aa)]  the  salaries  and  allowances  and  other  terms  and  conditions  of  service  of  4[the 
Chairpersons,  the  Presiding  Officers],  Recovery  Officers  and  other  officers  and  employees  of  the 
Tribunal and the Appellate Tribunal under sections 7, 12 and 13; 

(b)  the  procedure  for  the  investigation  of  misbehaviour  or  incapacity  of  5[the  Chairpersons  of 

Appellate Tribunals and the Presiding Officers of the Tribunals], under sub-section (3) of section 15; 

(c)  the  form  in  which  an  application  may  be  made  under  section  19,  the  documents  and  other 
evidence by which such application shall be accompanied and the fees payable in respect of the filing 
of such application; 

6[(ca)  the  form  of  application  and  the  fee  for  filing  application  under  sub-section  (3)  of                 

section 19;] 

7[(cc) the rate of fee to be refunded to the applicant under sub-section 8[(3B)] of section 19 of the 

Act;] 

6[(cca) the period for filing written statement under sub-section (10) of section 19; 

(ccb) the fee for obtaining copy of the order of the Tribunal under sub-section (21) of section 19;  

(ccc) the form and manner of authenticating digital signature under clause (a), and the manner of 
authenticating service or delivery of pleadings and documents under clause (b), of sub-section (1) of 
section 19A; 

1. Subs. by Act 1 of 2000, s. 16, for “and the Sick Industrial Companies (Special Provisions) Act, 1985” (w.e.f. 17-1-2000). 
2. Ins. by Act 44 of 2016, s. 42 (w.e.f. 1-9-2016). 
3. Clause (a) numbered as clause (aa) thereof by s. 42, ibid. (w.e.f. 1-9-2016). 
4. Subs. by Act 1 of 2000, s. 17, for “the Presiding Officers” (w.e.f. 17-1-2000). 
5. Subs. by s. 17, ibid., for “the Presiding Officers of the Tribunals and Appellate Tribunals” (w.e.f. 17-1-2000). 
6. Ins. by Act 44 of 2016, s. 42 (w.e.f. 1-9-2016). 
7. Ins. by Act 1 of 2013, s. 17 (w.e.f. 17-1-2000). 
8. Subs. by Act 44 of 2016, s. 42, for “(3A)” (w.e.f. 1-9-2016). 

20 

 
                                                           
(ccd) the form and manner of filing application and other documents in the electronic form under 

sub-section  (1)  and  manner  of  display  of  orders  of  the  Tribunal  and  Appellate  Tribunal  under               
sub-section (4) of section 19A;] 

(d) the form in which an appeal may be filed before the Appellate Tribunal under section 20 and 

the fees payable in respect of such appeal; 

1[(da)  the  rules  of  uniform  procedure  for  conducting  the  proceedings  before  the  Tribunals  and 

Appellate Tribunals under section 22A; 

(db) the other mode of recovery under clause (d) of  section 25;] 

(e) any other matter which is required to be, or may be, prescribed. 

1[(3) Every notification issued under sub-section (4) of section 1, section 3 and section 8 and every 
rule made by the Central Government under this Act, shall be laid, as soon as may be after it is made, 
before  each  House  of  Parliament,  while  it  is  in  session,  for  a  total  period  of  thirty  days  which  may  be 
comprised in one session or in two or more successive sessions, and if, before the expiry of the session 
immediately following the session or the successive sessions aforesaid, both Houses agree in making any 
modification  in the notification  or rule  or  both  Houses  agree that  the  notification  or rule  should  not  be 
issued or made, the notification or rule shall thereafter have effect only in such modified form or be of no 
effect,  as  the  case  may  be;  so,  however,  that  any  such  modification  or  annulment  shall  be  without 
prejudice to the validity of anything previously done under that notification or rule.] 

37.  Repeal  and  saving.—(1)  The  Recovery  of  Debts  Due  to  Banks  and  Financial  Institutions 

Ordinance, 1993 (Ord. 25 of 1993) is hereby repealed. 

(2) Notwithstanding such repeal, anything done or any action taken under the said Ordinance, shall be 

deemed to have been done or taken under the corresponding provisions of this Act. 

1. Subs. by Act 1 of 2000, s. 17, for sub-section (3) (w.e.f. 17-1-2000). 

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